Starting a consulting business is cheap

Starting a consulting business is cheap. (Trust me — I wasn’t rich when I started consulting.) In fact, a recent study shows that 17 percent of new business startups launch without any funds whatsoever. However, the Freelance UK article that reports on the study points out that being able to manage cash flow (or the lack of it) is crucial to the success of a business. As I’ve noted before, cash flow is one of the reasons why businesses fail.

Still, you don’t need a lot of money to get going in consulting — a computer, desk, chair, phone and Internet connection worked for me in the early days. If you can manage a budget and deal with income fluctuations, you’ll probably do okay. A lot of people recommend you get a line of credit before you head into consulting. I’ve never needed to use mine, but it’s nice to know it’s there if I ever get into a jam.